99¢ Only Stores sold to investors

CITY OF COMMERCE, Calif. – 99¢ Only Stores has agreed to be acquired for about $1.6 billion by the private equity firm Ares Management LLC and the Canada Pension Plan Investment Board.

The company’s chief executive officer Eric Schiffer, chief operating officer Jeff Gold and executive vice president Howard Gold will retain their positions and will serve as directors. Company founder David Gold will become chairman emeritus.

The deal is the latest example of investors’ interest in the dollar store format. Trian Fund Management LP made a failed $7 billion takeover bid for Family Dollar Stores Inc. in February, and in 2007 Dollar General Corp. was acquired by KKR & Co.